Mechanism design is the game-theoretic setting where a designer chooses the game played in order to ensure some desired behavior or some desirable outcome occurs. We cover the VCG mechanism and Revelation Principle.
We consider a highly simplified game between two players.
Foster’s Lemma provides a natural condition to prove the positive recurrence of a Markov chain.
The Simplex Theorem suggests a method for solving linear programs . It is called the Simplex Algorithm.
A linear program is a constrained optimization problem with a linear objective, , and linear functional constraints, , we could for instance write
We consider the problem of sequentially investing in a set of stocks.